The leverage effect describes the phenomenon that the use of debt capital can increase the return on equity. This occurs when the company's total return on capital is higher than the interest rate that has to be paid on the borrowed capital. In this case, the profit generated by the borrowed capital is not fully utilised by the interest costs, so that part of it increases the profit on equity. However, the leverage effect also harbours risks: If the total return on capital falls below the interest rate of the debt capital, the effect is reversed and the return on equity falls. Special valuation requirements can be met by add-ons such as the Versino Financial Suite that enable advanced financial analyses.
Service description in the e-invoice: How much detail really needs to be included?
The introduction of mandatory e-invoicing is shifting the focus away from mere PDFs towards structured data. This is particularly noticeable ...
Verifactu in Spain: the new invoicing obligation
Spanish companies are facing a turning point in their digital accounting. Royal Decree 1007/2023 and Regulation HAC/1177/2024 oblige almost all companies to ...
The e-invoicing regulations in Europe
Electronic invoicing is no longer a topic for the future, but is becoming a legal requirement in many European countries. Driven by initiatives such as ...
Versino Financial Suite V09.2025 for SAP Business One
Since the introduction of the Financial Cockpit at the start of 2025, it has been clear that the strategic focus of the Versino Financial Suite is shifting ...
Accounting outsourcing: Why it pays off for SMEs
Medium-sized companies are under increasing pressure to work efficiently, comply with regulatory requirements and remain competitive at the same time. In this constellation ...
CANDIS for SAP Business One
Intelligent document recognition: when AI wins the paper warThose who work in the accounting department of a medium-sized company today are familiar with the challenge: the incoming mail ...
